If you’re a sole trader, you will use your own individual tax file number when lodging your income tax return. You report all your income in the one tax return using the section for business items to show your business income and expenses. There is no separate business income tax return.

A sole trader pays tax at the ordinary individual tax rates and can apply the tax-free threshold. This means you won’t have to pay tax on the first $18,200 earned. This is on all earnings including any non-business income. 

Special rules apply to the income earned by individuals under 18. Certain types of this income may be taxed at higher rates.